What term describes businesses that lend funds instead of seeking expansion?

The term that describes businesses that lend funds instead of seeking expansion is "Business Lenders." Business lenders typically focus on providing loans and financial services to other businesses or individuals rather than investing in their own expansion projects. These lenders may include banks, credit unions, and other financial institutions that offer loans, lines of credit, and other financial products to help other businesses operate or grow.

In this context, the role of business lenders is crucial for ensuring that capital remains available in the economy, supporting various ventures that may not have sufficient funds for operations or growth. By facilitating access to money, business lenders help maintain cash flow in different sectors, thus contributing to overall economic stability. This definition aligns closely with the activities typically associated with business lenders in the financial ecosystem.